Fresh demands from labour unions pushing the proposed wage hike way above the minimum guaranteed increase of 25 per cent; have come in the way of Coal India Ltd entering the five-year (2011-16) wage-pact on Friday. CIL was previously bullish to enter the wage pact today.
However, according to sources, after hours of discussion the joint bi-partite consultative committee (JBCC) meeting – attended by the outgoing Chairman Mr. N C Jha, at Delhi – remained “inconclusive” on wage-hike. As per the tradition, top official of CIL join the negotiation at the last phase.
Next meeting
The date of the next meeting of JBCC will be decided once the next Chairman and Managing assumes office on February 1. Available information suggests that Ms. Zohra Chatterji, additional secretary in the Coal Ministry may take charge as the part-time CMD once Mr Jha retires on superannuation on January 31.
Sources said that though the JBCC reached a “broad consensus” to limit the wage hike at 25 per cent during its last meeting at Nagpur on January 12; the workers' unions today came up with fresh demands to the extent of 10 per cent. This included a hike in house rent in mining areas.
House rent was so far limited to Rs 150 in mining areas reportedly to limit the incidence of illegal occupation of colonies by vested interests. The demands were placed even after CIL agreed to enhance some perks or allowances.
“If we are to concede such demands, the total incidence of wage hike would cross 35 per cent, which was unacceptable at this juncture,” a source close to the development told Business Line .
Incidentally, a 25 per cent wage-hike was slated to impact the CIL balance-sheet to the tune of Rs 5,500-6,000 crore annually, inclusive of all employee-related costs such as gratuity, leave encashment and others.
The coal major had provided a “lump sum amount” of Rs 756 crore (approximately Rs 3,000 crore on annual basis) towards the wage pact impact in the second quarter of this fiscal.
On the revenue side, the company is expected to garner 12.5 per cent higher sales following the move to gross-calorific value-based pricing, Mr Jha recent said.